Gen Z's Spending Habits and Retail Trends in 2025
Gen Z's spending power is projected to reach about $12 trillion by 2030, reflecting their significant economic influence despite expected challenges this year, including a 23% decline in holiday spending among those aged 13 to 28. Budget constraints, debt, inflation, and student loans are driving this generation to be highly value-oriented and selective in their spending decisions. Notably, Gen Z experiences the highest severe credit card delinquency rate among generations, currently exceeding 10%.
While 59% of Gen Z still purchase from established brands, many are willing to explore lesser-known brands and more affordable alternatives. Approximately 82% plan to buy dupes—cheaper look-alikes—instead of full-priced original items, although they tend to be less enthusiastic about giving dupes as gifts. Retailers aiming to build loyalty with this group emphasize providing experiences and emotional value rather than hard selling.
In addition to their purchasing choices, about 58% of Gen Z frequently visit malls, using them as social hubs to attend events and interact with brands, not merely as shopping destinations. Malls respond by curating a diverse mix of retailers ranging from luxury to affordable options and increasingly partnering on events and discounts that appeal to Gen Z shoppers. This generation also engages in extensive pre-purchase research, comparing brands, evaluating materials, reading reviews, and seeking coupons before making buying decisions.
